Alliance Global sets budget for capex program this year

Alliance Global Group inc. (AGI), the holding firm of the businesses of Andrew Tan, said it is allocating P60 billion for capital expenditures this year, some 33 percent higher than the previous year.

The bulk of the capex of about P50 billion is allocated for property developer Megaworld Corp., which it will use to carry out its investment activities.

The company’s real estate arm plans to offer to the market 14 new projects this year valued at P30 billion. The company also intends to launch about four townships during the year, covering some 500 hectares of land in Metro Manila, Calabarzon and Mindanao, to provide the fresh source of revenue for the company.

“We are a conglomerate in motion. We believe that with the sectors we are in, we will very much benefit from pent-up spending resulting from the further reopening of the economy,” company CEO Kevin Andrew L. Tan said.

Another P4 billion will be allocated for Travellers International’s ongoing expansion projects, mainly in leisure and entertainment as eased quarantine restrictions brought its gross gaming revenues to a 26 percent year-on-year increase, propelled by its reinvigorated VIP business.

The entire Newport City complex is now open to meetings, incentives, conferences and exhibitions activities, while its world-renowned hotels such as Marriott Manila, Sheraton Manila, Hilton Manila, and Hotel Okura Manila, accept more visitors.

Meanwhile, around P3 billion will be set aside for Emperador’s ongoing expansion projects overseas. Since the pandemic, Emperador continued to grow from strength to strength, driven by its international operations through Whyte and Mackay for whisky, and Bodegas Fundador for brandy.

Last year, the group’s spirits subsidiary registered another record revenue of P55.9 billion and a profit of P10 billion as its premium whisky and brandy products gained further recognition in various markets around the globe.

Some P3 billion will be spent by Golden Arches Development Corp., the operator of the Mcdonald’s franchise in the country and is majority owned by the George Yang Group.

The company said is looking to further expand its store network as it plans to launch 45 stores this year, after opening 36 new stores in 2021.

“Our group anchored itself on stability and recovery over the last two years of grappling with the impact of the pandemic. We have since focused on renewal and revitalization—both pointing to our upbeat, more confident view of the future. This shift in mindset would not have been possible without the insights and innovations derived from such challenging times, and the affirmation that our businesses continued to stand on strong ground,” Tan said.